Your results on Commerce 2011 are shown below

1. When the government gives up its ownership and control of a business to individuals, this is known as

• nationalization
• commercialization
• privatization
• indigenization

2. The reward received by a party in a contract agreement is known as

• consideration
• acceptance
• offer
• warranty

3. Payment to a ship owner for carrying one’s cargo is

• demurrage
• fare
• dock due
• freight

4. Which of the following is not pre-sale service?

• Repair and maintenance work
• Providing detailed information about the goods to be purchased
• Demonstrating the use and performance of the products to be sold
• Setting up facilities for storing the product to be

5. Which of the following is used to inform the addressee that he has a registered parcel for collection?

• Counterfoil
• Express label
• Slip
• Telegram

6. The cooperative society that performs a combination of the functions of other types of cooperatives is called

• consumer cooperative
• multipurpose cooperative
• producer cooperative
• thrift and credit cooperative

7. That portion of the share capital which the company has asked the shareholders to pay for is known as

• authorized capital
• paid-up capital
• issued capital
• called-up capital

8. One of the advantages of air transport over other forms of transport is

• safety
• flexibility
• cost
• speed

9. Which of the following are elements of a valid contract?

• discharge and performance
• offer and acceptance
• age and maturity
• promise and capacity

10. The last link in the channel of distribution is the

• retailer
• consumer
• wholesaler
• producer

11. Taxes on imported foreign goods are also known as

• excise duties
• tarrifs
• ad valorem taxes
• dock dues

12. If Karamo who lives in The Gambia imports goods from Senegal and later sells them in Guinea Bissau; Karamo is engaged in

• multi-lateral trade
• counter trade
• barter trade
• entrepot trade

13. Manufacturers may sell goods directly to consumers where goods are I. made to customers’ specification. II. advertised by the manufacturer. III. perishable. IV. highly technical. V. widely demanded.

• I, III and IV only
• I and III only
• Ill, IV and V only
• Ill, IV only

14. Which of the following is a means of payment?

• I.O.U
• Postal order
• Promissory note
• C.I.F

15. Shipping services rendered by Nigeria to The Gambia would be classified by The Gambia as

• industry, direct and indirect services
• extraction, manufacturing and construction.
• industry, commerce and direct services
• industry, commerce and trading.
• e main divisions of production are

16. Use the information below to answer questions 17 to 19. A trader’s turnover was D36,000. Purchases was D28.000. The opening stock was D2,000 and the closing stock D3,000.
What is the cost of goods sold?

• D28,000
• D27,000
• D8,000
• D5.000

17. The average stock is

• D5,000
• D3,000
• D2,500
• D2,000

18. What is the rate of turnover?

• 13.5 times
• 10.8 times
• 9 times
• 5.4 times

19. In marine insurance when a particular cargo is thrown into the sea in order to prevent the ship from sinking, the type of marine loss is.

• particular average loss
• general average loss
• total average loss
• constructive average loss

20. The turnover of a trade is the

• number of times the stock is sold
• total sales made during a period.
• profit made during the period.
• total purchases made during the period.

21. The total assets of a business less its total liability is known as

• capital owned
• share capital
• issued capital
• working capital

22. A document issued to the public bv a company to advertise its share is known as

• prospectus
• tender
• share certificate
• trading certificate

23. An overdraft is the

• amount permitted to be withdrawn in excess of oneâ€s deposit.
• excessive cash withdrawn by commercial banks from the central bank
• credit balance stnding in the name of a customer
• special deposit made by commercial banks

24. Which of the following is not a principle of insurance?

• insurable interest
• subrogation
• surrender value
• proximate cause

25. The par value of a share is also known as its

• premium price
• market price
• discount price
• nominal price

26. A cheque dated 15th March, 2012 will become stale on

• 16th June, 2012
• 16th July, 2012..
• 16th August, 2012
• 16th September, 2012.

27. Banks settle their indebtedness in the

• discount house
• stock exchange market
• commecial bank
• clearing house

28. Which of the following distinguishes home trade from foreign trade?

• Payments are easily arranged
• Taxes are levied
• Goods have to be warehoused
• Middlemen are not required.

29. Before the advent of legal tender and credit instrument, which of the following was used as a medium of exchange?

• Currency notes
• Cowries
• Cheques
• Bankdrafts

30. When C.l.F. is quoted on an invoice, it means that the price includes the

• cost of the goods only
• cost of insurance only
• cost of carriage only
• cost, insurance and carriage.

31. 32. Encouraging a high quality of members’ products through the circulation of research information is a function of

• Manufacturers Association..
• trade union
• Employersâ€Association.
• Consumersâ€Association.

32. A voluntary association ,of business executives within a locality is known as

• Trade Union
• Consumers’s Association
• Chamber of Commerce
• Trade Association

33. Which of the following is not a function of the Ports Authority?

• Providing facilities for leading and off-loading of vessels
• Collecting dock dues
• Providing enough’ships for the country
• Dredging of harbours

34. Using symbols, letters, name or combination of these by a company to distinguish its products is

• product cycle
• marketing mix
• trade mark
• market segmentation.

35. Trade as a division of commerce is usually classified into

• retail and wholesale
• import and export
• home and foreign
• visible and invisible

36. Use the diagram below to answer questions 37 to 39.

Production. The box marked ‘X’ stands for

• indirect services
• industry
• occupation
• Aids to trade

37. The box marked ‘Y’ stands for

• warehousing
• home trade
• foreign trade
• marketing

38. Liquid capital in a business means the

• movable assets of the business
• authorized capital
• issued capital
• assets easily convertible to cash.

39. The “relationship which subsists between two or more persons carrying on a business with a view to profit” is

• cooperative society
• partnership
• public limited company
• credit union

40. Rights issue is the

• individualâ€s right to be issued shares on subscription.
• right of shareholders to vote on issues.
• preferential right to returns on shares.
• shares offered to existing shareholders at a cheaper price.

41. In limited partnership the partners’ A. capital is limited. B. liability is limited. C. participation is unlimited. D. ownership is unlimited.

• capital is limited
• liability is limited
• participation is unlimited
• ownership is unlimited

42. Which of the following pieces of information would be found in a typical debit note?

• customer code
• date of invoice
• brief reason for the debit
• E and O.E

43. The completion of the production process by grading and branding of goods is a function of the

• transporter
• wholesaler
• retailer
• consumer

44. The development of commerce was encouraged by the desire to

• get goods and services of others
• work with others
• create wealth for the nation
• satisfy all wants and needs

45. Which of the following countries is not a member of the Lake Chad Basin Commission?

• Nigeria
• Chad
• Gabon
• Cameroun

46. A false statement made by one party with an intention of inducing the other party to enter into a contract with him is known as

• misrepresentation
• legal capacity
• consensus ad idem
• consideration

47. The essence of adopting the marketing concept by a firm is the recognition that goods and services have no value unless they are

• desirable to costumers
• company oriented
• beautifully packaged
• profit oriented

48. When consumers engage in actions that express dissatisfaction with the quantity, price and quality of goods available, such action is termed

• consumer behaviour
• consumerism
• consumer education
• consumer orientation

49. Which of the following is not a factor of production?

• capital
• staffing
• land
• organisation

50. The act of keeping products in good condition until they are needed is

• insurance
• warehousing
• communication
• retaining

ANSWERS

1. C
2. A
3. D
4. A
5. C
6. B
7. D
8. D
9. B
10. B
11. B
12. D
13. A
14. B
15. B
16. B
17. C
18. B
19. B
20. B
21. A
22. A
23. A
24. C
25. D
26. D
27. D
28. A
29. B
30. D
31. A
32. C
33. C
34. C
35. C
36. A
37. C
38. D
39. B
40. D
41. B
42. C
43. B
44. D
45. C
46. A
47. A
48. B
49. B
50. B